On December 31, 2016, Barkely, Inc. had 200 million shares of common stock and 3 million shares of 8%, $100 par value cumulative preferred stock issued and outstanding. On April 1, 2016, Barkely purchased 12 million shares of its common stock as treasury stock. Barkely issued a 10% common stock dividend on September 1, 2016. Net income for the year ended December 31, 2016, was $130 million. Also, outstanding at December 31 were incentive stock options granted to key executives on September 15, 2012. The options are exercisable as of September 15, 2014, for 30 million common shares at an exercise price of $10 per share. During 2016, the market price of the common shares averaged $15 per share. The options were exercised on September 1, 2016. Required: Compute Barkely's basic and diluted earnings per share for the year ended December 31, 2016. Show the computation. In addition, Barkely has $20 million of 6% bonds, convertible into 2 million common shares issued at face value in 2016, and the preferred stock can be convertible into 40 million common shares. Compute Barkely's diluted earnings per share for the year ended December 31, 2016. Assume its income tax rate is 40%. Show the computation